Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 6 — Goodwill and Intangible Assets

The total amount of goodwill reported was $22.9 billion at March 31, 2023 and $22.8 billion at December 31, 2022. Foreign currency translation adjustments increased goodwill by approximately $128 million in the first three months of 2023. The amount of goodwill related to reportable segments at March 31, 2023 was $2.7 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $3.5 billion for the Diagnostic Products segment, and $16.4 billion for the Medical Devices segment. There was no reduction of goodwill relating to impairments in the first three months of 2023.

The gross amount of amortizable intangible assets, primarily product rights and technology, was $27.4 billion and $27.2 billion as of March 31, 2023 and December 31, 2022, respectively. Accumulated amortization was $18.2 billion and $17.6 billion as of March 31, 2023 and December 31, 2022, respectively. Foreign currency translation adjustments increased intangible assets by $43 million in the first three months of 2023. Abbott’s estimated annual amortization expense for intangible assets is approximately $2.0 billion in 2023, $1.9 billion in 2024, $1.7 billion in 2025, $1.5 billion in 2026 and $1.2 billion in 2027.

Indefinite-lived intangible assets, which relate to in-process R&D (IPR&D) acquired in a business combination, were approximately $807 million as of March 31, 2023 and December 31, 2022.